Zacks Research Issues Pessimistic Forecast for CMC Earnings

Key Points

• Zacks Research cut Commercial Metals’ Q1 2027 EPS estimate to $1.51 from $1.82 and now forecasts FY2027 EPS of $6.02, while maintaining a “Hold” rating.
• CMC recently beat quarterly expectations, reporting $2.09 EPS versus the $1.95 consensus and $2.66 billion in revenue, up 25.7% year over year.
• The company declared a quarterly dividend of $0.20 per share and authorized a $600 million stock buyback, covering up to 7.5% of outstanding shares.

Commercial Metals Company (NYSE:CMC - Free Report) - Analysts at Zacks Research lowered their Q1 2027 EPS estimates for shares of Commercial Metals in a report released on Thursday, October 29th. Zacks Research analyst Team now expects that the basic materials company will earn $1.51 per share for the quarter, down from their previous estimate of $1.82. Zacks Research currently has a "Hold" rating on the stock. The consensus estimate for Commercial Metals' current full-year earnings is $6.71 per share. Zacks Research also issued estimates for Commercial Metals' Q3 2027 earnings at $1.62 EPS, Q4 2027 earnings at $1.67 EPS, FY2027 earnings at $6.02 EPS, Q1 2028 earnings at $1.53 EPS, Q3 2028 earnings at $1.57 EPS, Q4 2028 earnings at $1.81 EPS, FY2028 earnings at $6.22 EPS and FY2029 earnings at $6.47 EPS.

Commercial Metals (NYSE:CMC - Get Free Report) last announced its quarterly earnings data on Thursday, October 15th. The basic materials company reported $2.09 EPS for the quarter, beating analysts' consensus estimates of $1.95 by $0.14. Commercial Metals had a net margin of 6.98% and a return on equity of 17.00%. The firm had revenue of $2.66 billion during the quarter, compared to the consensus estimate of $2.56 billion. During the same quarter last year, the firm earned $1.37 earnings per share. The firm's revenue was up 25.7% compared to the same quarter last year.

CMC has been the subject of a number of other reports. BMO Capital Markets reduced their target price on shares of Commercial Metals from $75.00 to $73.00 and set a "market perform" rating for the company in a report on Monday, October 19th. Weiss Ratings raised Commercial Metals from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Friday, October 16th. JPMorgan Chase & Co. reduced their price target on shares of Commercial Metals from $83.00 to $80.00 and set an "overweight" rating on the stock in a research report on Friday, October 9th. Barclays lowered their price objective on Commercial Metals from $80.00 to $72.00 and set an "equal weight" rating on the stock in a research note on Tuesday, October 20th. Finally, Morgan Stanley lowered their price target on shares of Commercial Metals from $88.00 to $84.00 and set an "overweight" rating on the stock in a report on Monday, October 19th. Ten analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $78.73.

Commercial Metals Stock Down 0.2%

Shares of CMC opened at $63.83 on Monday. The company has a debt-to-equity ratio of 0.71, a quick ratio of 1.66 and a current ratio of 2.34. The firm has a market cap of $7.02 billion, a P/E ratio of 10.87, a price-to-earnings-growth ratio of 3.92 and a beta of 1.55. The firm's 50-day simple moving average is $65.41 and its 200 day simple moving average is $69.21. Commercial Metals has a 52 week low of $55.97 and a 52 week high of $84.87.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the company. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new stake in shares of Commercial Metals in the 2nd quarter worth $2,354,000. Engineers Gate Manager LP acquired a new position in shares of Commercial Metals during the second quarter worth about $2,620,000. California Public Employees Retirement System increased its position in shares of Commercial Metals by 11.5% during the first quarter. California Public Employees Retirement System now owns 277,877 shares of the basic materials company's stock worth $17,070,000 after purchasing an additional 28,693 shares in the last quarter. State of Alaska Department of Revenue lifted its stake in shares of Commercial Metals by 78.6% in the 3rd quarter. State of Alaska Department of Revenue now owns 28,095 shares of the basic materials company's stock worth $1,743,000 after acquiring an additional 12,368 shares during the period. Finally, Bank of America Corp DE purchased a new stake in shares of Commercial Metals in the 2nd quarter worth about $84,320,000. Institutional investors own 86.90% of the company's stock.

Insiders Place Their Bets

In related news, Director John McPherson bought 1,390 shares of the stock in a transaction that occurred on Thursday, August 13th. The stock was acquired at an average cost of $71.92 per share, with a total value of $99,968.80. Following the transaction, the director directly owned 21,927 shares in the company, valued at approximately $1,576,989.84. This trade represents a 6.77% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. 0.62% of the stock is owned by corporate insiders.

Commercial Metals Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, November 11th. Investors of record on Wednesday, October 28th will be given a dividend of $0.20 per share. The ex-dividend date of this dividend is Wednesday, October 28th. This represents a $0.80 annualized dividend and a yield of 1.3%. Commercial Metals's dividend payout ratio is 13.63%.

Commercial Metals declared that its board has approved a stock buyback plan on Wednesday, August 5th that allows the company to repurchase $600 million in shares. This buyback authorization allows the basic materials company to reacquire up to 7.5% of its stock through open market purchases. Stock buyback plans are often an indication that the company's board believes its shares are undervalued.

Trending Headlines about Commercial Metals

Here are the key news stories impacting Commercial Metals this week:

• Neutral Sentiment: Zacks Research maintained a Hold rating on Commercial Metals. The firm’s current full-year consensus EPS estimate remains $6.95, while its new FY2029 estimate is $6.47 per share.
• Negative Sentiment: An analyst lowered the company’s Q2 EPS forecast, adding to a broader series of estimate reductions. Q2 EPS Forecast for Commercial Metals Decreased by Analyst
• Negative Sentiment: Zacks cut its FY2027 EPS forecast to $6.02 from $7.21, reduced FY2028 EPS to $6.22 from $7.39, and lowered estimates for multiple quarters. Changes included Q1 2027 EPS to $1.51 from $1.82, Q3 2027 to $1.62 from $1.85, Q4 2027 to $1.67 from $2.08, Q1 2028 to $1.53 from $1.84, Q3 2028 to $1.57 from $1.88, and Q4 2028 to $1.81 from $2.12.

About Commercial Metals

Commercial Metals Company NYSE: CMC is a steel and metals manufacturer, recycler and fabricator headquartered in Irving, Texas. The company produces and sells steel products used in construction, infrastructure and industrial applications, including reinforcing bar, wire rod, merchant bar, structural steel and related products.

CMC operates an integrated recycling and manufacturing model. Its recycling facilities collect and process ferrous and nonferrous scrap metal, which is used as raw material in the company's electric-arc-furnace steel mills.

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